Property hot-spots
Mining towns
n The
Regional towns linked to the mining industry are expected to again be among the top-performing property markets in Australia in 2012. Port Hedland, Newcastle, Bowen, Whyalla and Darwin are among the best prospects for 2012.
n Analysts
Mining towns have great allure for property investors because they often provide high rental returns and rapid capital growth; but mining towns are among the most perilous locations for investors. They sit at the extreme far end of the risk spectrum. Mining towns have volatile markets that depend on buoyancy in the resources sector.
property boom compass was fixed firmly on Brisbane’s inner south-west in the period 2000-2010, but those trying to predict the best capital growth in the next decade need to do little but follow the train line. have unanimously agreed that suburbs boasting a rail station en route to the CBD will see marked growth, signalling a push towards transitorientated development.
n Key
areas set to explode in development are Logan, Forest Lake and Springfield.
n Logan
offers two main sources of transportation – the M1 and rail – into two major employment nodes – Brisbane CBD and Ipswich/Springwood.
n We
expect these areas to be hotbeds of activity during the next decade as they are positioned close to Brisbane and the Gold Coast, offering the beach lifestyle on weekends.
Often the prices and rents in mining towns are sustainable only while a resources boom lasts. There are risks to be heeded – most notably in locations that are dependent solely on the fortunes of a single project + FIFO.
n Price
growth in these areas is expected to average 10 per cent per annum, outstripping Brisbane’s annual average growth of the past decade by 4%. 17